How and why your company should work towards closing the Gender Pay Gap
With Gender Pay Gap reporting now mandatory for companies with more than 250 employees, it’s important for companies looking to hire the top talent to ensure that they are doing as much as possible to close the gap between men and women’s pay.
Data from the Office of National Statistics indicates that the Gender Pay Gap is currently 9.8%, meaning that, on average, women are being paid a median hourly rate which was 9.8% less than their male colleagues. Furthermore, according to the Institute of Fiscal Studies, the earning gap widens for women post maternity leave and continues to widen until the child reaches the age of 20.
Why it pays to close the Gender Pay Gap
First things first, it’s the right thing to do. Further to that, if you want to employ and retain the best candidates, it’s really important to close the Gender Pay Gap as much as possible.
If you are not doing enough to close the gap between your male and female employees’ pay, it will potentially affect your marketability to new candidates. With more and more people looking for cultural fit when considering their next career move, being seen as a forward thinking, inclusive company is crucial.
It’s also easier than you think to take steps to close the gender pay gap, so there’s no reason not to actively work towards equal pay between male and female employees. Here are just a few ways in which you can help to close the gap:
Offer flexible working
Flexible working is one of the most sought after perks by any employee. By being flexible, you will open yourselves up to more candidates. As such, you can then recruit to fit your company’s requirements and culture. Offering flexible working will give your team the work-life balance that they need in order to work and still be available to their other commitments, such as those of a young family, or as a carer.
Make diversity one of your core values
Building an inclusive workforce is extremely important in terms of higher employee satisfaction and retaining your top talent. Furthermore, it can also have better financial returns.
According to an article by McKinsey, it is thought that gender-diverse companies are 15 per cent more likely to have financial returns above that of their industry’s average. It therefore makes financial sense to try to close the Gender Pay Gap!
If you are a company with upwards of 250 employees, you will already need to be publishing Gender Pay Gap data. But even if you do not meet this threshold, being transparent with your team will build your reputation as an excellent employer.
Indeed, why not flip the age old salary expectations question on its head when interviewing candidates? Instead of asking candidates what their salary requirements are, make it a rule to compensate all employees at the same level equally. This will also help you to recruit women into positions at all levels throughout your company.
If you are looking for your next hire, get in contact with MacKenzie King. As specialist accountancy and financial recruitment consultants, we can ensure that the candidate is right for the role on offer. What’s more, we can also help you to build an inclusive workforce and a strong reputation as an employer who is working to close the Gender Pay Gap.